EPF Board to meet on May 28To finalise rate of interest for 2004-05
New Delhi, May 25
The Central Board of Trustees of Employees Provident Fund will meet on Saturday to recommend the final rate of interest on EPF accumulation for 2004-05.

Maruti Udyog Limited (MUL) today launched its first world car, Swift, the European-style compact hatchback car with an introductory price tag of Rs 3.87 lakh (ex-showroom Delhi) for the base model to great enthusiasm within and outside the company.

Models pose with Maruti Suzuki’s new car, Swift, at its launch in New Delhi on Wednesday. — PTI
photo

Islamabad, May 25
FICCI today called for dismantling trade and tariff barriers, enhancing rail and road links, besides liberalising visa regulations, to increase India-Pakistan bilateral trade from the current level of $ 400 million to $ 5 billion.

Pakistan President Pervez Musharraf with FICCI President Onkar S. Kanwar (right) at President’s House in Islamabad on Wednesday. — PTI
photo

India, Germany reach travel pact
New Delhi, May 25
India and Germany today wrapped up two days of talks with a travel pact that allows airlines of both countries to operate 50 flights per week in each direction by the summer 2006.

Jindals to set up stainless steel plant at Manesar
New Delhi, May 25
The Jindal Group today announced to set up a manufacturing plant at Manesar in Gurgaon district in Haryana at an estimated cost of over Rs 20 crore to meet the growing demand in the domestic market. The company has plans to set up such plants at Mumbai, Bangalore later.

SAIL comes out of red, posts 171 pc profit
New Delhi, May 25
Taking a sharp U-turn from its loss-making profile till two years ago, Steel Authority of Indian Limited (SAIL) has registered a 171 per cent net profit at Rs 6,817 crore in 2004-05, making the public-sector company virtually debt-free and prompting it to fix a 33 per cent dividend. With a record fourth-quarter net profit of Rs 2,920 crore, the company’s turnover rose by 32 per cent to an all-time high of Rs 31,800 crore, SAIL Chairman
V.S. Jain said today.

Oriental Insurance Chandigarh office adjudged best
Chandigarh, May 25
From an annual loss of Rs 60 crore, the city-based regional office of Oriental Insurance has earned a profit of Rs 7.5 crore this year. For recording a business growth of over 15 per cent, the office was awarded the “Best Regional Office” award from among the 21 regional offices all over the country on May 22 at Mount Abu.

Exports of leather goods and sewing machines dip
Chandigarh, May 25
Punjab has now started making inroads in the international market. While readymade garments, handicraft and yarn textile exports are among the most acceptable items abroad, the region lags behind in exports of sewing machines and leather goods.

Reliance to network 20,000 villages by Sept
Chandigarh, May 25
Mr Pankaj Rajpal, Business Head, Wireless Group, Reliance Infocomm, announced today that the company would provide wireless Internet connectivity in towns and villages of Punjab, Haryana and Himachal Pradesh by September.

New Delhi, May 25
The Central Board of Trustees of Employees Provident Fund will meet on Saturday to recommend the final rate of interest on EPF accumulation for 2004-05.

The board in its last meeting had recommended 8.5 per cent as an interim interest rate on EPF accumulations for the last fiscal.

It had then decided that the final rate of interest would be recommended after taking into account the actual interest income at the end of the financial year.

The board is likely to consider actual interest income received up to March 31, 2005 from provident fund investments for the year 2004-05 for recommending the final rate of interest.

The Centre has released the interest on Special Depository Scheme at 8 per cent on January 1, 2005 and about 8 per cent of EPF investment is in the Central Government’s SDS.

The board had appointed global consultancy firm, Mercer, in February to suggest lucrative investment strategies, to pay the 9.5 per cent interest rate to the fund members following the Union Finance Ministry’s decision not to hike the interest rate of Special Deposit Scheme.

The Finance Minister had last month ratified the 9.5 per cent rate of interest on the Employees Provident Fund (EPF) accumulations for 2002-03 and 2003-04.

However, the rate of interest for 2004-05 has not yet been ratified as the government is awaiting the recommendations of the Central Board of Trustees of the EPFO in that regard.

A 1 per cent increase in the interest rate would lead to a gap of Rs 927 crores between what the EPF gives to its beneficiaries and what it earns on investments, according to calculations made by the Central Board of Trustees of the EPFO.

While about 80 per cent of the EPF corpus is invested in Special Deposit Scheme (SDS), the balance is invested in public sector/financial institutions, central government loans, state government loans and government guaranteed loans.

New Delhi, May 25
Maruti Udyog Limited (MUL) today launched its first world car, Swift, the European-style compact hatchback car with an introductory price tag of Rs 3.87 lakh (ex-showroom Delhi) for the base model to great enthusiasm within and outside the company.

While MUL Managing Director Jagdish Khattar called the launch of Swift as an example of growing recognition of Indian intellect and engineering capability, the response from the market was reflected in the fact that the company has already received about 9,000 bookings for the vehicle even before its launch.

The company officials here said that the MUL was looking at further capturing the Indian market with the lunch of Swift, which hit the roads in Hungary earlier this year after its launch in Japan in November 2004. MUL would also be looking at exporting the vehicle in the South Asian region from its plants here.

The small car aimed at repositioning Maruti Suzuki as a stylish brand for the new global Indian, sports a 1.3 litre gasoline engine and will compete with Hyundai Getz, Tata Indica and Fiat Palio.

Swift will be available in three models—the base Lxi version, the mid-range Vxi and the top-end Zxi.

Priced at Rs 3.87 lakh, the base model has front and rear fog lamps, wide tread 165/80 R14 steel wheel tyres and flared arches for better stability combined with side impact beams. The LXi will have power steering and air-conditioning, but manual controls for doors and locking. The VXi has front and rear electric windows, central locking for four doors, front and rear fog lamps and key-not-removed warning buzzer. Sporting ABS with electronic brake distribution (EBD) as an option, it sports a tag of Rs 4.05 lakh.

The top-of-the-line ZXi has dual front airbags, ABS with EBD and 14-inch alloys and more-than-normal bells and whistles, rear window wiper and demister besides keyless entry. The ZXi is available for Rs 4.85 lakh.

Mr Khattar while saying that the company was looking at selling as many as 6 lakh units of the model in India in its first year of launch pointed out that the over 85 per cent of indigenisation in Swift had helped the company keep the pricing lower.

He said that although the car has been launched but the deliveries of the vehicle would only begin from June 6, after its models have adequately reached all dealers across the country and the car has been unveiled in most of the cities.

When asked specifically about the duration of the introductory offer, Mr Khattar said that it would continue for a ‘reasonable period’. Incidentally, Suzuki Motor Corp, owns 54.2 per cent stake in Maruti Udyog Ltd, which has cornered more than half of India’s auto market.

Islamabad, May 25
FICCI today called for dismantling trade and tariff barriers, enhancing rail and road links, besides liberalising visa regulations, to increase India-Pakistan bilateral trade from the current level of $ 400 million to $ 5 billion.

“Augmenting business-to-business cooperation between the two countries is uppermost on the FICCI agenda, a priority that we feel will pave the way for the policy-makers in India and Pakistan to remove infrastructural bottlenecks and improve the business and economic environment,” FICCI President Onkar S. Kanwar, who is heading a 100-member business delegation visiting Karachi, Islamabad and Lahore, told mediapersons here.

Spelling out a seven-point agenda to boost trade and investment between the two neighbours, Mr Kanwar said for the two South Asian giants to reap the benefits of faster economic growth and expedite the process of regional integration, it was essential to de-freeze the list of items (now limited to 768 items) importable from India.

Signalling Pakistan’s willingness to open up trade with India, President Pervez Musharraf said today the two countries could “simultaneously” improve economicties while moving forward on the political front to resolve bilateral issues, he told the FICCI delegation.

General Musharraf described the South Asian Free Trade Agreement (SAFTA), reached by the SAARC countries during their summit in January, 2004, here, as an important development for enhancing regional trade cooperation. But, he said, amity between India and Pakistan was essential for translating it into substantive cooperation.
— Agencies

New Delhi, May 25
India and Germany today wrapped up two days of talks with a travel pact that allows airlines of both countries to operate 50 flights per week in each direction by the summer 2006.

German carriers will also be allowed to operate on routes to Hyderabad, Goa and Kochi.

Similarly, Indian carriers have been granted access to three additional points of call in Germany.

However, intermediate fifth freedom traffic rights have not been permitted to carriers of both countries. India will have to specify the three cities.

At present, Indian and German airlines can operate 32 flights a week. The number will go up to 42 by October of 05-06 and eventually 50 by March next year.

Government officials said German carriers can now fly up to seven times a week to any city. For New Delhi, they can operate a maximum of 14 frequencies by winter 05-06, 17 by the summer of 2006 and 20 by winter 06-07.
— UNI

New Delhi, May 25
The Jindal Group today announced to set up a manufacturing plant at Manesar in Gurgaon district in Haryana at an estimated cost of over Rs 20 crore to meet the growing demand in the domestic market. The company has plans to set up such plants at Mumbai, Bangalore later.

“ The plant will be spread over an areas of 1.50 lakh square feet and will commence operations by March ,2006. The company hopes to achieve a sale target of over Rs 125 crore in the next five years,” said Mr Ratan Jindal, Vice- Chairman and Managing Director, Jindal Stainless, here today.

The Hisar- based group has taken the lead in promoting the “ non-corrosive and maintenance -free” high -quality stainless steel as a new-age building material and is the only company in India with the technology and expertise to offer turn-key solutions right from design, fabrication and construction of stainless steel architectural projects, said Mr Jindal.

The company hopes to increase its production capacity to 600,000 tones of stainless steel in 2005-06 as against 5,55000 tonnes in 2004-05, he said.

He said the company had already got contracts from Delhi Metro, New Delhi Municipal Corporation, ONGC, Sahara India, Ansal Housing & Construction and multiplexes.

New Delhi, May 25
Eicher Motors Ltd today decided to sell off its tractors, engines and gears divisions for Rs 310 crore to Tafe Motors and Tractors Ltd.

“The Board of Directors of Eicher Motors Ltd (EML) today granted approval for the sale on a going concern basis of the tractors, engines and gears divisions of the company at Manideep, Alwar and Parwanoo to Tafe Motors and Tractors Ltd for a total consideration of Rs 310 crore,” Eicher Group chairman and Chief Executive S. Sandilya told reporters.

Eicher had informed the Bombay Stock Exchange that the Board of Director of EML has approved the agreed drafts of the agreement for the transaction and the definitive agreement would be signed shortly by the two parties.

“This acquisition will provide strong synergies of growth in the future to help achieve market dominance. It will give us an additional revenue of Rs 500 crore and we are targeting at Rs 2,000 crore revenue in 2005-06,” Director, Tafe, Mallika Srinivasan said. “Tafe’s combined market share, after the acquisition, is 22 per cent and a combined volume of 53,000 tractors. We hope to increase volumes to 60,000 in the next fiscal,” she added.
— PTI

New Delhi, May 25
Taking a sharp U-turn from its loss-making profile till two years ago, Steel Authority of Indian Limited (SAIL) has registered a 171 per cent net profit at Rs 6,817 crore in 2004-05, making the public-sector company virtually debt-free and prompting it to fix a 33 per cent dividend. With a record fourth-quarter net profit of Rs 2,920 crore, the company’s turnover rose by 32 per cent to an all-time high of Rs 31,800 crore, SAIL Chairman V.S. Jain said today.

“Dubbed as one of the largest loss-makers just a couple of years ago, our achievement was crowned by the best-ever Q4 performance when all seven SAIL steel plants, including the three special ones, showed net profit,” he told reporters here.

Of the 33 per cent dividend, interim dividend of 18 per cent worth Rs 743 crore has already been paid.

Blowplast net down

Blowplast Ltd, a part of the Dilip Piramal Group, has posted a decline of 65.53 per cent in the net profit of Rs 1.12 crore for the quarter ended March 31, 2005 as compared to Rs 3.25 crore for the quarter ended March 31, 2004.

Announcing the result, the company ascribed the decline in the net profit to general slowdown in sales growth in Q4. Its total revenue has increased from Rs 49.17 crore in Q4-04 to Rs 50.65 crore for the quarter ended March 31, 2005.

It has posted a net profit (after adjustments) of Rs 9.67 crore for the year ended March 31, 2005 as compared to Rs 11.11 crore for the year ended March 31, 2004. Total revenue has increased from Rs 236.66 crore in FY-04 to Rs 265.00 crore for the year ended March 31, 2005.

Magma Leasing

Magma Leasing Ltd, a retail finance company, has recorded an impressive growth in Punjab. The company financed assets worth Rs 182.44 crore in 2004-05, 32 per cent up as compared to the corresponding last fiscal.

At the national level, the company ended the year on a good note recording an all-time high disbursal for assets worth Rs 1,759.25 crore, up by 58 per cent from Rs 1,112.89 crore in 2003-04.

Addressing mediapersons here yesterday, Regional Head of Magma Leasing Ltd, Mr Timir Ghoshal, said they would be opening three more branches in the region by June at Yamunanagar, Sirsa, Mandi Gobindgarh. Nearly 25 per cent of the company’s total business is from this region.

With the opening of these, the number of branches in the region of Delhi, Punjab, Haryana and Himachal Pradesh would go up to 25. They will also be spreading their business in Tamil Nadu, Gujarat and Madhya Pradesh, he added.

Kajaria net up

Kajaria Ceramics Ltd today said it has recorded all-round growth in operating and financial performance for the financial year 2004-2005 and has notched a net profit of Rs 25.49 crore.

A press note issued by the company said the income from operations recorded an increase by 12 per cent to 300.39 crore.

Out of the total exports of Rs 80 crore from the country, Kajaria has contributed to the extent of Rs 21 crore in the financial year 2004-05, the note said.

JK Corp

JK Corp Ltd, manufacturer of JK Lakshmi Cement, recorded Rs 26.05 crore net profit for year ended March 31, 2005, as against Rs 31.58 crore loss recorded during the previous 18 months.

Sales turnover also registered a growth of 28 per cent to Rs 592 crore, a company press note said.

The capacity utilisation stood at 112 per cent during the review year.

The Board of Directors recommended an issue of bonus shares to its shareholders through capitalisation in the proportion of one equity share for every equity share. The board also recommended a final dividend of Rs 1.5 per share for 2004-05, Asahi said in a press note.

The company had earlier paid an interim dividend of Re 1 per share, which takes the total dividend for the year to Rs 2.50 per share.

ICI India net down

ICI India today reported about 57 per cent dip in net profit at Rs 47 crore for the year ended March 31, 2005, compared to Rs 109 crore in the previous fiscal and declared a dividend of Rs 5.50 per share.

The total income of the company rose to Rs 766 crore in 2004-05 from Rs 700 crore in 2003-04, it said in a press note.

During the fourth quarter ended March 31, 2005, ICI India reported a loss of Rs 8,00,000, it said.
— Agencies

Chandigarh, May 25
From an annual loss of Rs 60 crore, the city-based regional office of Oriental Insurance has earned a profit of Rs 7.5 crore this year. For recording a business growth of over 15 per cent, the office was awarded the “Best Regional Office” award from among the 21 regional offices all over the country on May 22 at Mount Abu.

The award, a trophy, was handed over by the Chairman-cum-MD of Oriental Insurance, Mr M. Ramadoss, at the All-India Regional Officers Conference held at Mount Abu. In recognition of their efforts, the employees would be given 1 per cent of the gross salary as a cash award.

Mr G.C. Gaylong, Regional Manager, said: “This regional office RO is also placed second in the country in terms of business growth which is up by 15 per cent. Mr Gaylong stated it was possible due to better management of claims and greater emphasis on private car business and personal insurance.

Chandigarh, May 25
Punjab has now started making inroads in the international market. While readymade garments, handicraft and yarn textile exports are among the most acceptable items abroad, the region lags behind in exports of sewing machines and leather goods.

While exports of sports goods and handtools is doing fine, the exports of sewing machines from Ludhiana and Jalandhar have shown a decline with exports during the first half of 2004-05 at Rs 11.62 crore as against Rs 21.77 crore in the previous year. Exports of leather goods are also on the decline as exports in the first half of the current fiscal stood at Rs 52.69 crore as against Rs 66.42 crore in 2003-04.

As per the data available, exports from Punjab, which were only Rs 4,408 crore in 2001-02 increased by over 100 per cent to Rs 8,933 crore in 2003-04. The exports from the state are expected to further increase by Rs 11,000 crore during 2004-2005.

Handicraft exports are all set to register an impressive growth over last year. The figures highlight that handicraft exports have already touched Rs 168.38 crore in the first six months of the current fiscal as against the total handicraft exports of Rs 196.87 crore in 2003-04.

According to the data compiled by the Punjab State Industries and Export Corporation (PSIEC), exports from Punjab during the first half of 2004-05 has already touched Rs 5,526.29 crore.

Of the total exports of Rs 5,526.29 crore, during the first half of 2004-05, exports of readymade garments and hosiery were Rs 762.17 crore as against 1,311.59 crore in 2003-04.

That of cycle and cycle parts is Rs 638.29 crore as against Rs 854.43 crore in 2003-2004. Yarns and textiles stood at Rs 1,356.21 crore as against Rs 1,732.95 crore in 2003-04.

New Delhi, May 25
The ONGC may take up the 20 per cent stake Malaysia’s Petronas has abandoned in a $ 2 billion LNG project in Iran.

Petronas had on Monday ceded its 20 per cent interest in the Pars LNG production company set up last year to build a $ 2 billion liquefaction facility in Iran.

“We discussed the issue yesterday and ONGC Videsh Ltd (the overseas arm of ONGC) is keen on the opportunity created by the exit of Petronas,” a top official in the Ministry of Petroleum and Natural Gas said today.

The project involved the conversion of gas from Phase-11 of the giant South Pars offshore gas field into LNG. France’s Total SA and Petronas hold 60 and 40 per cent in the partnership looking to develop block 11.

Meanwhile, the ONGC has said it is interested in acquiring a 27.2 per cent stake in Tide Water Oil Co Ltd. The Ministry of Heavy Industries had proposed disinvestment of 27.2 per cent equity of Tide Water Oil Company Ltd (TWOL), currently being held by Andrew Yule Company
Ltd. — PTI

Chandigarh, May 25
Mr Pankaj Rajpal, Business Head, Wireless Group, Reliance Infocomm, announced today that the company would provide wireless Internet connectivity in towns and villages of Punjab, Haryana and Himachal Pradesh by September.

He said Reliance operates CDMA technology, which supports voice and Internet services. CDMA has been accepted the world over to be the most efficient technology with high capacities, capable of delivering steady Internet on wireless products.

The CEO of Reliance Infocomm for Punjab, Haryana and Himachal Pradesh, Mr Himanshu Kapania, said that 428 towns and 20,000 villages would be covered in the three states and Chandigarh by September this year.

This will help in increasing the Internet penetration in the region. The rich agricultural belts of Doaba, Malwa, Majitha, Pepsu and rural areas of Haryana, the tourist towns in the apple-growing belts of Himachal will now get high-speed wireless Internet connectivity. So, at the click of a button connected through your mobile phones, you can book your hotel rooms. Nearly 90 per cent of HP Tourist Development Corporation bookings are done through internet.

Mr Kapania said that when the Internet is accessed through a landline phone, it is only capable of offering a maximum speed of 56 kbps.

But Reliance internet service offers three time the speed at any hour.

The monthly charges range between Rs 650 to Rs 1,500 with some free data downloads. For customers, who do not want to commit any rental, the company also offers zero rental plan in which usage charges of 50 paise per minute during the day and 25 paise during night would be applicable.

The same rates would also be applicable to the pre-paid customers, said Mr Rajpal.

Kribhco ChairmanChandigarh, May 25
Dr Chandra Pal Singh, MP, was unanimously re-elected Chairman, Kribhco at a meeting of the Board of Directors of the society held in New Delhi, yesterday. Dr Singh has been on Kribhco Board as Director since May, 1995. Mr RK Dhami, a legal luminary and a cooperative banker, was also unanimously elected Vice-chairman.
— TNS

Alchemist acquires stakeChandigarh, May 25
Alchemist Limited, formerly known as Toubro Infotech and Industries Ltd., today announced that it has bought 60 per cent stake in Valiant Healthcare Limited, one of the fast evolving pharmaceutical companies in India, for consideration of Rs 45 million as the part of its growth strategy to focus on Healthcare and Agri business. Valiant is a Delhi-based pharmaceutical company in the sector of branded formulation and currently has 41 branded products being marketed throughout India. Valiant achieved a turnover of Rs 200 million in the financial year 2003-04. After acquisition of this stake in Valiant, Alchemist proposes to change the name to Alchemist Lifesciences Limited (ALL)
— TNS

JK Bank chief awardedSrinagar, May 25
Outgoing Chairman of the Jammu and Kashmir Bank M Y Khan has bagged an award for “dynamic leadership and outstanding contribution to the banking industry.” The Commercial Broadcasting Service (CBS) Awards are given by All-India Radio every year. The bank’s “JK Bank Diary programme,” an educative weekly programme on banking, was also felicitated on the occasion to mark its 200th episode. — UNI

Hyundai plans LPG-driven carAmritsar, May 25
Hyundai Motor India Ltd (HMIL) would readily manufacture LPG driven car as soon as the central government assured to provide adequate LPG stations in the country. Mr BVR Subbu, President, HMIL, stated this after inaugurating the showroom including service centre for Hyundai cars here today. He said his company was also looking for alternative cheap fuels as the cost of oil was constantly rising. But could not take concrete steps in this regard unless assured by the
government. — OC